BP is preparing to exit the North Sea as a windfall levy pushes oil and gas taxes to 78% while Labour scraps profit-offset rules to fund £1.8bn support. The company holds interests in 20–25 UK fields and is in talks to sell them to Ithaca and other buyers.
New measures include a windfall levy that pushes oil and gas taxes to 78% and eliminates profit-offset allowances, generating roughly £1.8bn annually to fund cost-of-living support. The changes scrap rules allowing UK profits to be offset against overseas losses, significantly raising effective tax rates on domestic operators.
BP’s chief executive ordered a strategic review of all UK offshore operations, leading the company to consider exiting the North Sea after 60 years. Talks are underway with Ithaca and other potential buyers to divest interests in multiple producing fields and related infrastructure.
BP currently holds interests in approximately 20–25 producing fields across several North Sea hubs and has already sold key assets including the Shearwater field, Magnus platform and the Forties pipeline system. This scale makes BP one of the largest operators facing the new tax regime.
Other major oil companies, including Shell and Chevron, have restructured or sold UK assets, citing concerns over higher taxes and regulatory risks. Industry groups report around 1,000 job cuts per month in the North Sea, raising fears of further workforce reductions and long-term decline in UK production.
